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ADA-ES Inc.: Mercury rising
Tuesday, January 2, 2007
ADA-ES Inc. (NASDAQ:ADES)
is an environmental technology and chemical specialty company that has
tremendous upside. This swiftly-growing business provides customers
(the coal-fired utilities) with technologies that reduce air pollution.
According to a senior executive at the company, the good news is that
"state air pollution control laws are becoming more stringent."
Most of ADES's growth is in the mercury control market. A national law passed in 2005 called the "Clean Air Mercury Rule" (known as "CAMR") allowed states to decide if they want to follow EPA targets or make their own decisions on mercury reduction.
Indeed, many states have adopted tough laws of their own -- and in time frames that require controls to be in place within the next 18 months. According to the company, states that have passed mercury reduction regulation are New Jersey, Connecticut, Massachusetts, Illinois, Maine, New Hampshire and Delaware.
Pennsylvania is expected to be on board within the next six months, a hugely important influence to this sector, since the state has numerous coal-fired power plants. Illinois is a big market as well with approximately 50 to 60 plants in the state.
But the big news is that Texas-based power and energy company TXU Corp. (NYSE:TXU) is building eight new coal-powered utility plants and will be putting mercury reduction processes in place.
ADES is positioned to grab a fair share of that business as well as the reduction contract for TXU's 15 existing plants. The winning bidder of the mercury control installation and processes will be announced in the next month.
Mercury control is a hot topic and will become hotter in the election year cycle. The sector should double or triple in the next three years, according the the company.
Type of Company: A rapidly-growing company well-positioned to capture new business that will be generated from sweeping state regulation to reduce mercury emissions.
Stock Price Target: Currently at $16.23, ADES has the potential to double in the next 18 months. I would expect a pop in the next four weeks as the company receives new orders.
Hilary is an owner or beneficial owner of the stock of ADA-ES.
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ADA-ES Inc.: Mercury rising
Most of ADES's growth is in the mercury control market. A national law passed in 2005 called the "Clean Air Mercury Rule" (known as "CAMR") allowed states to decide if they want to follow EPA targets or make their own decisions on mercury reduction.
Indeed, many states have adopted tough laws of their own -- and in time frames that require controls to be in place within the next 18 months. According to the company, states that have passed mercury reduction regulation are New Jersey, Connecticut, Massachusetts, Illinois, Maine, New Hampshire and Delaware.
Pennsylvania is expected to be on board within the next six months, a hugely important influence to this sector, since the state has numerous coal-fired power plants. Illinois is a big market as well with approximately 50 to 60 plants in the state.
But the big news is that Texas-based power and energy company TXU Corp. (NYSE:TXU) is building eight new coal-powered utility plants and will be putting mercury reduction processes in place.
ADES is positioned to grab a fair share of that business as well as the reduction contract for TXU's 15 existing plants. The winning bidder of the mercury control installation and processes will be announced in the next month.
Mercury control is a hot topic and will become hotter in the election year cycle. The sector should double or triple in the next three years, according the the company.
Type of Company: A rapidly-growing company well-positioned to capture new business that will be generated from sweeping state regulation to reduce mercury emissions.
Stock Price Target: Currently at $16.23, ADES has the potential to double in the next 18 months. I would expect a pop in the next four weeks as the company receives new orders.
Hilary is an owner or beneficial owner of the stock of ADA-ES.
hilaryonstocks at 5:47:00 PM EST Blog about this entry |
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This entry has 3 comments: (Add your own)
-
ades is in a position to rise in price very quickly. the new laws are tailor made for this company. we are buying all we can.
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There are some real negatives on ADES one needs to know about:
A very high P/E ratio of 243; All insider tradings are sales, not a single buy over the last two years, acc. to Thompson Financial.
Street.com rated it a HOLD in early October of this year.
I think I'll keep my powder dry on this one.
1/2/07 9:02 PM